In the article below, I explained how Japanese people are conservative in asset management.
Conservative Wealth Management in Japan
In this article, I will tell you more about the characteristics of Japanese asset management from my thesis.
In National survey on securities investment 2015, Japan Securities Dealers Association asked necessary of securities investment.
I think it is necessary 23.7%
I do not think it is necessary 75.8%
The rate is almost near the rate below
Suppose that, if you invested 100,000 yen, you would either get a capital gain of 20,000 yen or a capital loss of 10,000 yen, at 50% probability.
What would you do? Choose only one answer.
1. I would invest 21.4 %
2. I would not invest 78.6 %
Moreover, about 70 – 80 percent of Japanese don’t have experienced principal loss ever.
Next figure shows that the rate of cashes and deposits is higher. And, insurances and pensions are basically principal guarantee in Japan
That is, the proportion of safe assets reachs about 80 percent in Japan.
Any data interestingly shows that about 80 percent accounts for prefering safe assets.
Finally, I will mention the ratio of earned income to assets income, the U.S vs Japan
the U.S is 3 : 1
Japan is 8 : 1
That’why, referring to the U.S or other countries, Japan is working to improve the environment of people’s asset management.